The Capital Markets Authority (CMA) has approved the grant of a license to Exinity Capital East Africa to operate as a non-dealing online foreign exchange broker in line with the Capital Markets Act and the Capital Markets (Online Foreign Exchange Trading) Regulations, 2017.
This the fourth non-dealing online foreign exchange broker to be licensed by CMA. The other three are; EGM Securities Ltd (trading as FXPesa), SCFM Ltd (trading as Scope Markets), and Pepperstone Markets Kenya Limited.
‘’This is an important milestone in the online foreign exchange market as it gives Kenyans a choice of four non-dealing online foreign exchange brokers licensed by CMA. In line with the Authority’s investor protection mandate, we urge Kenyans to only trade through licensed entities to avoid the risks associated with firms that are not licensed. We are closely collaborating with licensees to identify strategies that can help us protect unsuspecting Kenyans from unlicensed entities where they are not protected by the regulator,’’ CMA Acting Chief Executive, Mr. Wyckliffe Shamiah said:
The non-dealing online foreign exchange broker license means the entity is licensed by the Authority to act as a link between the online foreign exchange market and a client in return for a commission or mark-up in spreads and does not engage in market-making activities such as buying and selling of foreign currencies.
Non- dealing online forex brokers do not offer client advice or trade on behalf of their clients. Clients deposit their investment amount with an account to be offered by the broker. The trader (client) is responsible for executing trades – buying and selling of any products on the platform and the requisite risk assessments are undertaken to determine the suitability of clients who can participate in online forex trading.